HBA-KDB H.B. 2988 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2988 By: Gutierrez Financial Institutions 3/20/2001 Introduced BACKGROUND AND PURPOSE Under current law, general obligation bonds (bonds) of the State of Texas issued by the Veterans' Land Board (board) in connection with the Veterans' Land Program and the Veterans' Housing Assistance Program require the signatures of the chairman and executive secretary of the board and the governor. The requirement of the governor's signature may cause problems in obtaining timely execution of the bonds and related documents because of the often unpredictable nature of the governor's schedule. In addition, the board is currently required to approve the specific terms, including documentation in substantially final form, relating to any veterans' housing assistance loans. This requirement may prove to be burdensome and unwieldy when pricing a loan sale, because the pricing must be coordinated with a board meeting. This may eliminate the ability to respond quickly to favorable market conditions. Furthermore, unfavorable developments at the scheduled time of pricing may either force the board to accept the pricing or to postpone the pricing until some future date. House Bill 2988 authorizes the board, on an issue by issue basis, to determine the manner in which bonds issued by it are to be executed and provides that the governor's signature is no longer required on such bonds. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2988 amends the Natural Resources Code to require general obligation bonds (bonds) issued by the Veterans' Land Board (board) for the purposes of funding the Veterans' Land Program and Veterans' Housing Assistance Program to be signed and executed as provided in the board's resolution or order authorizing the issuance of the bonds. The bill removes the requirement that the bonds be signed by the chairman and the executive secretary of the board, impressed with the seal of the board, and signed by the governor and attested by the secretary of state. The bill authorizes the resolution of the board authorizing the sale of any or all of the veterans' housing assistance loans (loans) to designate one or more officers or employees of the board to act on behalf of the board in conducting the sale of the loans and in determining or setting the purchaser of the loans and terms of the purchase agreement for the loans, provided that the resolution must set the maximum principal amount of the loans to be sold and the minimum sales price of the loans to be sold, expressed as a percentage of principal amount of such loans. EFFECTIVE DATE September 1, 2001.